Milan, a cosmopolitan and economically dynamic city, is increasingly seen as an attractive real estate investment destination. The city provides a unique blend of culture, history, and business opportunities that make it ideal for investors seeking high returns. Whether you’re a student, a family, a remote worker, or a retiree, there is undoubtedly a neighborhood for you in Milan!
Milan, an attractive destination for property investment
Milan is considered an attractive destination for property investment for several reasons. As the second most populous city in Italy after Rome, Milan offers a comprehensive range of amenities typical of major urban centers. Renowned as one of the world’s leading fashion destinations, with a cityscape that is both sophisticated and adorned with monuments from the Italian Renaissance, all the conditions are in place for a successful real estate investment.
Notably, Milan attracts a significant portion of its property investment from abroad, with 80% of such investments originating from international sources. In terms of geographical areas, the city of Milan witnessed a substantial increase in investment volume, reaching 1.8 billion euros in 2022, representing a 25% growth compared to 2016. This reflects a positive trend in foreign interest and confidence in Milan’s real estate market.
The economic heart of Italy
Milan stands as the economic center of the country, hosting over 322,000 businesses in its metropolitan area. Among them, more than 500 large enterprises engage in international activities, constituting 30% of the nation’s total. Milan’s primary industries include chemistry, textiles, automotive, fashion, as well as literary and musical publishing.
Notably, globally renowned companies have their headquarters in Milan, including Dolce & Gabbana, Pirelli, Giorgio Armani, Versace, and Alfa Romeo.
A property Market in constant growth
The property market in Milan is experiencing continuous growth, driven by increased demand for coworking and residential spaces. Additionally, there is a strong presence of startups and international companies seeking office spaces in the city center. According to Fabiano Testa, an expert in international property investment, one-third of foreign property investments in Italy are directed towards Milan. Located just two hours from the sea and surrounded by lakes and mountains, Milan is ideal for families and more. Its popularity is on the rise, especially in certain areas like short-term property rentals.
Beyond its flourishing economy, Milan is renowned for its high quality of life, world-class universities, and a vibrant artistic and cultural scene. All these factors make it a coveted destination for foreign investors looking to diversify their real estate portfolios.
Here are some globally renowned universities in the capital city of Milan:
- Università degli Studi di Milano
- Università di Milano-Bicocca
- Politecnico di Milano
- Università Bocconi
- Università Cattolica del Sacro Cuore
- IULM (Free University of Languages and Communication)
- Università Vita-Salute San Raffaele
- Accademia di Belle Arti di Brera
- Nuova Accademia de Belle Arti (NABA).
Milan, a cosmopolitan city
Milan, the largest urban area in Italy, is composed of several neighborhoods with highly varied property prices. To choose the ideal location, you need to consider your preferences, needs (such as access to amenities, schools, and work), and financial capabilities. Your decision will ultimately be influenced by the neighborhood you choose.
7 Milanese neighborhoods to invest in 2023
On average, purchasing a square meter in Milan costs €9,040.47. However, it’s crucial to note that this price can vary depending on the period and the location of the neighborhood, ranging from a minimum of €6,900 to a maximum of €12,000.
Navigli District: high-yield investment
The Navigli district in Milan has become a must-consider location for investors seeking high returns. Situated near the historic center of Milan, this area is renowned for its picturesque canals, designer boutiques, and lively restaurants and bars. Beyond its tourist charm, Navigli offers exceptional real estate potential. The district takes pride in its proximity to three of the city’s major universities:
- Free University of Languages and Communication
- Bocconi University (Economics)
- Naba Academy of Fine Arts
Navigli experiences strong rental demand due to its central location and amenities catering to all residents. Quality apartments in the area rent quickly and at high levels, ensuring a stable and lucrative rental return for investors.
According to Immobiliare.it, The Navigli area has witnessed a surge in average prices over the past two years. The average price in the Navigli area reached its peak in the month of October 2023, with a value of € 6,487 per square meter (with prices ranging from €3,125/m² to €5,425/m²). It’s an increase of 7.72% compared to October 2022 (6,022 €/m²).
Consequently, property owners can anticipate significant long-term capital gains on their investments in this Milanese district.
Here are some iconic places in the Navigli district:
- Vicolo Lavandai (Laundrywomen’s Alley)
- Basilica of Saint Lawrence (Basilica di San Lorenzo)
- Art Galleries
Brera District: A cultural and historical neighborhood
Milan’s Brera district is an iconic destination for enthusiasts of history and culture. Nestled in the historic center of the city, it offers an unforgettable experience for those who explore its streets. This picturesque area is renowned for its cobblestone streets, ancient buildings, baroque architecture, and the famous Brera Botanical Garden. Over the centuries, this neighborhood has been the intellectual hub of Milan, housing the city’s and the country’s most prestigious university, the Academy of Fine Arts.
The Brera district is also celebrated for its museums, such as the Brera Art Gallery. Brera is a trendy neighborhood with contemporary art galleries and design boutiques, allowing visitors to discover Milan’s creativity in an inspiring environment.
In essence, the Brera district is a magical and unique place where art and history enthusiasts can uncover the very essence of Milan. However, this passion comes at a cost, as the average price per square meter in the neighborhood is listed at €8,000.
Here are some prices per square meter in Brera: €8,966/m² (ranging from €8,100/m² to €9,833/m²).
Porta Romana District: the ecological investment
Porta Romana is a trendy district located southwest of the city, just a short distance from the city center but far enough to escape the hustle and bustle of the lively metropolis. It’s an ideal place to reside, featuring well-maintained avenues lined with elegant houses, perfect for budget-conscious buyers, with prices per square meter of €6,836/m² on average (ranging from €2,975/m² to €7,167/m²).
The Porta Romana district has become a model for ecological investment. This area is rich in innovative technologies aimed at reducing the environmental impact of constructions and lifestyles. Buildings are equipped with solar panels and rainwater harvesting systems, significantly reducing their energy and water consumption.
Here are some Explore the points of interest in the Porta Romana district:
- The covered market (the largest market in Lombardy)
- Bagni Misteriosi
- QCTerme Milano
- Muba Children’s Museum Milan
- The Church of San Bernardino alle Ossa
Isola, the business district
Isola, located in the northern part of Milan, is an emerging district suitable for both business professionals and young families. It is the ideal location for those who want to escape the hustle and bustle of the city center without venturing too far away.
The neighborhood is particularly popular among individuals working in the Porta Nuova business district, as well as young families. Isola offers more affordable options for purchasing or renting property compared to other areas in Milan, with a price per square meter of €6,201/m² on average.
Isola’s strategic location and diverse offerings make it a favorable choice for those seeking a balance between proximity to business hubs and a more affordable cost of living.
Porta Garibaldi district in Milan
The district is primarily composed of modern and renovated buildings, along with numerous offices, shops, and restaurants. It is close to many tourist attractions in Milan, the Brera district, and the renowned Duomo. The area is well-connected with public transportation, featuring numerous metro and bus lines nearby. Residents of the neighborhood have the advantage of living in a dynamic and multicultural urban environment.
However, the popularity of the district and its proximity to tourist sites have also led to an increase in property prices in the area. The average price per square meter is €9,852, with prices ranging from €4,406/m² to €11,125/m²).
It’s important to note that this area is highly sought after by expatriates and professionals due to its economic attractiveness and proximity to the city’s business districts. Overall, the Porta Garibaldi district is a high-end residential area, offering both a vibrant urban lifestyle and all the amenities that a residential neighborhood can provide.
Porta Venezia district: investment in luxury property
Located in the city center of Milan, the Porta Venezia district is experiencing significant growth in high-end property investment. This historic area is capable of offering exceptional properties with unique architectural features, attracting a sophisticated and demanding clientele. The Art Nouveau, Art Deco, and Neoclassical-style buildings draw the attention of investors seeking an iconic property in Milan.
While the prices of these properties can be quite high, the investment offers an interesting return on investment. The cultural and commercial appeal of this area also makes it a privileged location for investment. The renovation and modernization of old structures are also significant features of property investment in Porta Venezia.
Investors see an opportunity to revive the historical charm of the area by offering elegant and modern properties. Finally, the central location of the district is also a key factor for investors. It is easily accessible using public transportation or by car, making it ideal for permanent residents or tourists. The average price per square meter is €7,736, with prices ranging from €3,100/m² to €7,167/m².
Fiera and San Siro: best neighborhoods for families and expatriates
The Fiera district in Milan is considered an ideal residential area for families due to its unique blend of suburban tranquility and urban connectivity. This neighborhood provides a peaceful and serene environment while being well-connected to the rest of the city, which is a significant advantage. It primarily serves as a residential zone with numerous educational institutions and schools, making it an excellent location for families with children.
If residents are in the mood for a livelier nightlife, they can explore the neighboring San Siro district, which is also family-friendly and a preferred choice for expatriates. Many sports facilities are present, including the Giuseppe Meazza football stadium for both AC Milan and Inter Milan, as well as the racecourse.
Within the San Siro area, the average price is €3,876/m² (ranging from €1,704/m² to €5,388/m²).
Summary of property prices in the main areas of Milan
How to find a property in Milan?
If you’re considering living or investing in real estate in Milan, a real estate professional from iad Overseas remains your ideal point of contact to assist you in realizing all your plans. Don’t hesitate and contact one of our property consultants* Milan!